NGOs oppose plan to transfer CIIF to DA

Several non-government organizations are opposing an alleged plan to transfer the Coconut Industry Investment Fund (CIIF) from the United Coconut Planters Bank (UCPB) to the Department of Agriculture (DA) and to divert part of the estimated P50-billion coco levy to fund the controversial P8.4 billion Agusan Valley Reserve Area Development project of the Philippine Coconut Authority (PCA).

At the same time, these groups led by the multisectoral Philippine Ecumenical Action for Community Empowerment Foundation Inc. (PEACE) are objecting to alleged maneuvers by Malacañang to replace PCA Administrator Evangeline Valbuena with DA Undersecretary for grains Jesus Emmanuel Paras.

"Valbuena is being eased out by Malacañang because she objected to the Agusan project because it will benefit only the stakeholders in the project and not the entire population of more than three million coconut farmers. Our coconut farmers see it as another attempt to manipulate and divert the coco levy fund for other purposes other than improving the coconut industry," said PEACE president Manuel P. Quiambao.

The stakeholders in the Agusan coconut agro-industrial project are the PCA, the CIIF Group of Companies which include Legaspi Oil Co. Inc.; Granexport Manufacturing Corp.; Cagayan de Oro Oil Mill Co. Inc.; Southern Luzon Coconut Oil Mill Inc.; Iligan Coconut Industries Inc. and San Pablo Manufacturing Corp., and the UCPB-CIIF Finance and Development Corp. (Cocofinance).

The partnership was firmed up through a memoradum of understanding (MOU) signed on Oct. 6, 2004 by then PCA Administrator Danilo Coronacion, CIIF president Rolando Golez and Cocofinance chairman and former Agriculture Secretary Leonardo Q. Montemayor.

Quiambao said coconut farmers are concerned that the coco levy funds, already determined by the Supreme Court as public funds will be diverted to CIIF and Cocofinance, both coco-levy related corporations.

Under the proposed development concept for the PCA Agusan reserve area, the PCA in coordination with CIIF and Cocofinance, will develop the 110,000 hectare property into a plantation of coconut and other tree crops, agro-forest products and forest plants.

The other broad features of the project include the participation of about 70,000 farming families, including indigenuous and migrant families from urban areas in Mindanao; target increase in family incomes from P10,000 to about P180,000 per year through primary and secondary intercrops, aquaculture and livestock raising, and implementation of processing and marketing agreements between farmer beneficiaries and CIIF.

A task force composed of members of Rafael Baskinas of PCA; Claro Torres of CIIF Oil Mills and Edmundo T. Lim Cocofinance was created to study, draw up and recommend the project’s concept, duties and obligations of respective parties.

Agriculture Secretary Arthur Yap denied any knowledge of the Agusan project nor moves to transfer the CIIF to the DA.

"The project was submitted to us but I have not read the project to be able to determine if I should approve it or reject it," I said Yap.